Mumbai : Jignesh Shah-led FTIL, which has been declared unfit to run an exchange and ordered to pare its stake in MCX to 2 per cent from 26 per cent currently, will have to divest its entire stake as per new guidelines issued on Tuesday.
Currently, Financial Technologies India Ltd (FTIL) is in the process of divesting its stake in Multi Commodity Exchange (MCX) to comply with the FMC’s orders. It has received bids from potential buyers, which have sought more time to submit binding offers following the PwC report on related-party trades between MCX and FTIL group.
Opposing the FMC’s fresh norms, FTIL said in a statement: “The legality of issuing guidelines under FCRA (Forward Contract Regulation Act) is already before the Bombay High Court and despite that FMC has issued another set of norms which are exceeding the provisions of FCRA 1952 and hence ultra-vires.” FTIL questioned the timing of announcing the new norms.
“We are affected more directly as our original entry conditions are being changed mid-course by FMC to further compel us to exit our shareholding under policy distress with the new norms, ignoring natural justice,” it said.